HOUSTON – (By Michelle Leigh Smith for Realty News Report) – An extreme cold snap, burst pipes and power outages disrupted the Houston real estate market last week, leaving agents and property managers scrambling to address weather-related damage.
Many homes under contract sustained water damage after pipes froze and burst during the unusually low temperatures.
Closings have been delayed, and some listings have been temporarily withdrawn from the market while repairs and assessments are completed.
“First COVID. Now this.”
For Greenwood King Properties’ top producer Heidi Dugan, who has ranked among Houston’s leaders for the past 15 years, the freeze introduced another major challenge. “This has definitely impacted us,” Dugan says. “First COVID, now this. I have a closing in two weeks on a house that now has broken pipes and water damage. I don’t think we can get an adjuster out and have all the numbers in time to close as scheduled. We have to determine how to file insurance claims, assess the damage, and coordinate repairs.”
At Bernstein Realty, owner and broker Amy Bernstein reports the freeze has created significant complications across her portfolio.
“Some of our clients experienced leaks and water damage,” Bernstein says. “Lenders are increasingly asking for re-inspections to verify there are no leaks or storm-related damage. Securing the right vendors to assess and make repairs has been difficult. Finding plumbers who can respond before a scheduled closing has been a real challenge. As a result, we’ve had multiple closings delayed throughout the company.”
Bernstein says her team has been working nonstop to manage the fallout from frozen pipes and subsequent water damage.
Shortage of Plumbers
“Our property managers have been working around the clock dealing with pipe and water damage,” Bernstein explains. “There simply aren’t enough plumbers to handle the volume of calls. Some plumbers are performing air tests—pressurizing pipes to locate leaks before turning the water back on. That method helps prevent additional water damage, but scheduling and completing the necessary repairs still takes time, which delays closings.”
“We’re also seeing some insurance companies authorize repairs before an adjuster can visit, because adjusters are overwhelmed and can’t respond immediately,” she adds. “Another issue is supplies—many plumbing aisles are low or empty, similar to the shortages seen at grocery stores during the recent water access problems.”
“This too shall pass, and I think everyone will appreciate reliable electricity and water even more,” Bernstein says. “The sun was out this weekend, and the market remains resilient.”
Affidavits About Storm Damage
Annie Ortiz, an escrow officer with Chicago Title in the 1208 Hutchins office, says lenders have been requesting affidavits from buyers confirming a property wasn’t affected by the storm, rather than requiring full re-inspections in every case. “Our office did not lose power, but all my closings were pushed back to this week,” Ortiz says.
The question now is how the February ice storm and accompanying rolling blackouts will affect the Houston real estate market going forward.
Avoiding Future Blackouts
“Buyers will begin asking whether a property shares an electrical grid with critical facilities like hospitals or fire stations,” says Ruthie Porterfield, an agent with Martha Turner Sotheby’s. “They will also likely inquire about existing generators or the ability to install one.”
The week before the ice storm, the Houston Association of Realtors reported another positive performance in pending listings for the week ending February 8, with 2,656 properties going under contract compared with 2,419 a year earlier—a 9.8 percent increase over the comparable week in 2020.
Then Valentine’s Day brought frigid weather that again challenged the Houston housing market. Realtors say they are addressing the storm’s disruption and working to maintain transactions despite widespread damage and delays.
“I have nine transactions pending right now,” says Kristin Tillman of Greenwood King Properties. “Some suffered minor exterior or sprinkler damage, but nothing major. I have one listing where the buyers will do a walkthrough to confirm there are no leaking pipes.”
“I heard from a lender that they won’t be ordering reappraisals as they did after Hurricane Harvey,” Tillman adds. “I know a few listings were withdrawn from the MLS due to plumbing issues. Thankfully, none of my active listings had interior damage.”
Problematic Pipes
Realtor Neal Hamil with Martha Turner Sotheby’s reports similar disruptions: “I had a closing moved from Monday to Friday, and two listings with plumbing issues. Two new listings are delayed because of problematic pipes.”
Hamil has previous experience handling weather-related challenges. Earlier in his career as a senior executive at Ford Models in New York City, he managed crises ranging from blackouts to operational disruptions. He recalls a personal incident in Connecticut when a furnace failure during an extended trip led to frozen plumbing and extensive interior damage—an experience that makes the Houston market’s challenges feel familiar but manageable. “That was the biggest mess ever. I am so glad I live in Houston now,” he says.
Feb. 22, 2021 Realty News Report Copyright 2021
Caption: Cold weather caused copper pipe to break in Texas winter storm. Photo credit: Ralph Bivins, Realty News Report. Copyright photo 2021.
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File: (2) Texas. Snow. Ice. Widespread Storm Damage Disrupts Houston Realty. Broken Pipes. Bernstein Realty. Martha Turner Sotheby’s. Greenwood King Properties.